- 1
- Each Contracting Party shall allow tariffs for air services to be decided by each designated airline or airlines based on commercial considerations in the marketplace. Intervention by the Contracting Parties shall be limited to:
-
- a)prevention of tariffs or practices whose application constitute anti-competitive behaviour which has or is likely to have the effect of preventing, restricting or distorting competition or excluding a competitor from a route;
- b)protection of consumers from tariffs that are unreasonably high or restrictive due to the abuse of market power; and
- c)protection of airlines from tariffs that are artificially low due to direct or indirect governmental subsidy or support.
- 2
- Neither Contracting Party shall require notification or filing of any tariff to be charged by the designated airline or airlines of the other Contracting Party. Tariffs may remain in effect unless subsequently disapproved under paragraph 3 below.
- 3
- Neither Contracting Party shall take unilateral action to prevent the coming into effect or continuation of a tariff charged or proposed to be charged by an airline of the other Contracting Party. If one Contracting Party believes that any such tariff is inconsistent with the considerations set out in paragraph 1 above, it may request consultations and notify the other Contracting Party of the reasons for its dissatisfaction. These consultations shall be held no later than 15 days after receipt of the request. Without a mutual agreement the tariff shall take effect or continue in effect.
